The accounting records of Best Pharmaceuticals, Inc., reveal the following:

Requirement
1. Compute cash flows from operating activities by the direct method. Also evaluate Best€™s operating cash flow. Give the reason for yourevaluation.

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$40,000 16,000 Payment of salaries Net income d wages....$ $32,000 Payment of income tax 23,000 Collection of dividend Depreciati Decrease in current 12,000 18,000 Payment of interest20,000 55,000 7,000 25,000 liabilities Increase in current assets Cash other than cash... 21,000 Gain on sale of land . Payment of dividends Collection of accounts Acquisition of land Payment of accounts payable 9,000 receivabie. 95,000 50,000